Survivorship bias

In WWII, the U.S. Air Force sought to reduce aircraft losses by analyzing bullet holes on returning planes. The logical step seemed to be reinforcing the most damaged areas. However, this was a classic case of survivorship bias. Mathematician Abraham Wald pointed out that planes that returned had survivable damage; the real vulnerability lay in the undamaged areas — the places that, if hit, led to losses. #finance #investing #behaviouralfinance

At Geckoboard, we’re on a mission to help people use data more simply and effectively. We’ve put together a series of quick lessons to help you spot fallacies in data or call out dodgy visualizations so you can use data with confidence and make better decisions both in work and in life. Tweet this image All too often we see companies basing their strategies off what another company has done or off of one strategy that worked for them one time. Think about how many headlines you see t

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Survivorship bias can lead us down a road of years of wasted time and money. And we may be more susceptible to it than ever before. #psychology #decisions #failure #success

The Misconception: You should focus on the successful if you wish to become successful. The Truth: When failure becomes invisible, the difference between failure and success may also become invisib…

Visual Theory on Instagram: "“Steve Jobs, Bill Gates, and Mark Zuckerberg dropped out of college and became millionaires, so will I.” - Survivorship Bias"

During World War II, a mathematician pointed out his observation that saved tons of resources and lives. He found that people easily fell prey to the survivorship bias.